Indonesian Economic Transformation and Employment : Policy Input for an Indonesia Jobs Strategy
The current downturn in commodity prices provides an opportunity for Indonesia to shift away from its dependence on commodity-driven growth towards higher value-added activities in manufacturing and services. However, Indonesia faces both global an...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26526363/indonesia-economic-transformation-employment-policy-input-indonesia-jobs-strategy http://hdl.handle.net/10986/24928 |
| Summary: | The current downturn in commodity prices
provides an opportunity for Indonesia to shift away from its
dependence on commodity-driven growth towards higher
value-added activities in manufacturing and services.
However, Indonesia faces both global and structural
challenges in making this transition. Global challenges
include competition from regional trade agreements,
especially the TPP, but also from structurally lower global
trade growth. In addition, Indonesia’s manufacturing sectors
have also been losing competitiveness to regional
competitors, while most job creation in the 2000s took place
in low productivity sectors. This report aims to show the
patterns of economic transformation in Indonesia in the past
decade and a half, especially in terms of jobs and
employment. The report highlights barriers to labor movement
and macroeconomic sources of demand for labor. The report
seeks to contribute to the design of a jobs strategy that
emphasizes the transition of workers from low to high
productivity sectors. While Indonesia has, so far, relied on
job creation in low-productivity, and even vulnerable,
employment, future challenges would require the country to
shift to higher productivity and quality jobs. |
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